Sensex surges to month's high, gains 283 pts

The BSE benchmark Sensex on Monday rose by 283 points to reach the month's highest levels on aggressive buying by funds on expectations that the economy might expand faster with the RBI suggesting interest rate cuts.

The Sensex, which had recorded a gain of 210 points on Friday, added another 283.03 points at 9,583.89, a level last seen on January 7. It moved between 9,601.56 and 9,329.23 points during the day.

Similarly, the 50-share National Stock Exchange index Nifty shot up by 76.80 points at 2,919.90, after moving between 2,926.75 and 2,840.15 points during the day.

Marketmen said the not so bad GDP growth rate projected by the government and likely cuts in interest rates by the RBI might boost the metals and heavy machinery segments.

They said other major supporters to the market were consumer durables and refinery stocks.

Reserve Bank Governor D Subbarao had said there is room to adjust interest rates further.

Sentiment got a boost after Planning Commission Deputy Chairman Montek Singh Ahluwalia said the 7.1 per cent projected growth rate in the current fiscal is good and a fiscal stimulus package should be given next fiscal.

As the market turned cheerful, barring Hindustan Unilever, all the 30 Sensex stocks were higher on wide-spread buying support.